Author: SolarFusion

GST on Solar Rooftop Systems: What Homeowners and Businesses Should Know
Good news for anyone planning to go solar! The GST on solar rooftop systems has been reduced from 12% to just 5%, making clean energy more affordable than ever. Whether you’re a homeowner looking to cut electricity bills or a business aiming to go green, understanding how GST applies can help you plan your investment better and save money.

1. GST Rates on Solar Rooftop Systems
The GST on solar rooftop systems in India depends on the components used in the installation:

• Solar Panels: Attract 5% GST
• Solar Inverters: Attract 5% GST
• Off-grid systems, including solar panels, batteries, and PCUs (if applicable), attract 5% GST. This includes Li-ion batteries used in solar systems.
• Other Accessories: Like mounting structures, cables, and balance-of-system components usually fall under 18% GST

Key Insight: The government has reduced GST on solar power equipment to encourage renewable energy adoption, making solar more affordable.

2. GST Benefits for Businesses
If your business is registered under GST, you may be able to claim input tax credit (ITC) for the GST paid on solar equipment. This means the tax you pay on purchasing solar systems can offset the GST liability on your business output.

Note: Residential consumers not registered under GST cannot claim ITC.

3. How GST Affects Your Solar Rooftop Budget
While solar installation costs have reduced over the years, GST still contributes to the total investment. For example, if your rooftop solar system costs ₹3,00,000, a 5% GST will add ₹15,000 to your upfront cost.

Understanding this helps you plan your finances better and ensures there are no surprises at the time of installation.

4. Recent Updates and Government Incentives

The Indian government has been promoting rooftop solar adoption through initiatives like:

• Net Metering: Surplus electricity can be fed back to the grid.
• Subsidies for residential and commercial systems: Often covering 20–40% of the cost for certain categories.
• Reduced GST rates: As mentioned above, solar equipment GST was slashed to 5% to make renewable energy affordable.

These policies, combined with GST benefits, make rooftop solar a financially attractive and sustainable choice.

5. Key Takeaways

• Most solar rooftop components attract 5% GST.
• Businesses may claim input tax credit, reducing the effective cost.
• Planning your budget with GST in mind avoids surprises.
• Government incentives further reduce the overall investment.

Investing in a solar rooftop system is not just an eco-friendly choice—it’s a financially smart decision, especially with favourable GST rates and government incentives. Whether for your home or business, understanding GST can help you maximise your savings and enjoy the long-term benefits of clean energy.

Connect With Us
At Educosmic Solutions Pvt. Ltd., we are committed to promoting clean and renewable energy solutions for a brighter future.

📞 Contact: +91 940-389-1609‬
🌐 Website: www.solarfusion.in
📧 Email: [email protected]
👤 Director: Mr Gavish Jaiswal

Note: Install a Solar Rooftop System at your residence under the PM Surya Ghar Bijli Yojana and avail a government subsidy of up to ₹78,000.
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Electricity is something we use every day — for lights, fans, appliances, and more. But have you ever thought about where that electricity comes from? Most of us still rely on traditional energy sources, but now more people are switching to solar rooftop systems. Let’s understand the difference and which one is better for you.

What is a Solar Rooftop System?
A Solar Rooftop System means installing solar panels on your roof. These panels capture sunlight and turn it into electricity, which you can use in your home or office.

What is Traditional Energy?
Traditional energy comes from sources like coal, oil, gas, or hydroelectric dams. This power is made at big plants and sent to your home through wires.

Main Differences Between Solar Rooftop and Traditional Energy:

1. Cost
Solar: One-time setup cost, but saves money every month on your electricity bill. You can also get government subsidies.

Traditional: No setup cost, but monthly bills keep increasing.

2. Environment
Solar: Clean and eco-friendly. No pollution.

Traditional: Causes pollution and harms the environment.

3. Energy Control
Solar: You can make your own electricity and even sell extra power back to the grid.

Traditional: You depend on the power company and may face power cuts.

4. Maintenance
Solar: Very low maintenance. Works for 20–25 years.

Traditional: You don’t maintain it, but it’s based on old systems that can fail.

5. Government Support
Solar: Big support with subsidies up to ₹78,000, net metering, and more.

Traditional: No major support or savings.

In today’s fast-paced world, our energy choices are shaping not just our lifestyle but also the planet’s future. The increasing effects of climate change, rising fuel costs, and the urgent need to protect natural resources have made green energy more important than ever.

Why Switch to Green Energy?
Green energy—like solar, wind, and hydropower—is clean, renewable, and sustainable. Unlike fossil fuels, it does not release harmful greenhouse gases, making it a powerful way to combat global warming. By choosing renewable energy, you can:
Reduce your electricity bills

• Lower your carbon footprint
• Support a cleaner and healthier environment
• Contribute to energy independence
• Benefits for You and the Planet

Switching to solar panels on your rooftop, using energy-efficient appliances, or opting for renewable energy providers brings long-term financial savings while ensuring a sustainable future. Plus, government subsidies and incentives make going green more affordable than ever.

The Time is Now
Every step counts. Whether it’s powering your home with solar energy, encouraging your workplace to adopt sustainable practices, or simply spreading awareness, your decision to switch today can inspire others tomorrow.

Every year on 20th August, India observes Akshay Urja Diwas (Renewable Energy Day) to spread awareness about the importance of renewable energy in our daily lives. The day marks the birthday of former Prime Minister Rajiv Gandhi, who believed in promoting sustainable development and clean energy initiatives.

Why Akshay Urja Matters

The term Akshay Urja translates to inexhaustible energy, referring to sources like solar, wind, hydro, and biomass energy. Unlike fossil fuels, these energy sources are sustainable, abundant, and eco-friendly. With rising concerns over climate change, depleting natural resources, and increasing electricity demand, renewable energy has become the need of the hour.

India’s Progress in Renewable Energy

• India has emerged as one of the world’s leaders in renewable energy:
• The country ranks among the top five globally in installed solar and wind capacity.
• Government initiatives like PM-KUSUM Yojana and Rooftop Solar Subsidy Schemes are making renewable energy more accessible.
• India aims to achieve 500 GW of renewable energy capacity by 2030.

How You Can Contribute

• Install solar panels at home or the workplace.
• Choose energy-efficient appliances.
• Reduce wastage of electricity by adopting simple habits like switching off unused lights and fans.
• Spread awareness in your community about the benefits of green energy.

Conclusion
Akshay Urja Diwas is not just a day of observance—it is a call to action. By shifting towards renewable energy, we can ensure a cleaner environment, lower electricity costs, and a sustainable future for generations to come. Let’s pledge to make renewable energy a part of our lifestyle and support India’s journey towards becoming a green energy hub.

Connect With Us
At Educosmic Solutions Pvt. Ltd., we are committed to promoting clean and renewable energy solutions for a brighter future.
📞 Contact: +91 940-389-1609
🌐 Website: www.solarfusion.in
📧 Email: [email protected]
👤 Director: Mr. Gavish Jaiswal

Installing a rooftop solar system is not just an eco-friendly move — it’s a smart financial decision. With electricity prices steadily rising, solar allows you to generate your power and reduce your bills by up to 90%, especially when using net metering.

Government support makes it even more affordable. Homeowners can claim a subsidy of up to 40% under the Rooftop Solar Programme, making solar energy more accessible and budget-friendly.

One of the biggest advantages? The payback period is just 3 to 5 years. Since solar panels last over 20 years, you’ll enjoy decades of free electricity after your initial investment. It also protects you from power cuts and increasing energy tariffs, giving you long-term peace of mind and energy independence.

Installing a rooftop solar system also adds value to your property. Today’s buyers look for energy-efficient homes, and solar makes your home stand out. On the environmental front, a typical 1kW system offsets around 1.5 tonnes of CO₂ each year — equivalent to planting over 50 trees annually.

Maintenance is easy. Solar panels are highly durable and require only occasional cleaning and routine checks. Whether you’re a homeowner or a business owner, solar works for all, helping you save money while contributing to a greener planet.

In short:
With strong government incentives, high energy savings, and long-term benefits, going solar is one of the wisest investments you can make.